CAV Warner Home Entertainment Co. faced significant losses from DVD piracy in China. To combat this, Warner adopted a flexible pricing strategy, offering DVDs at various price points to appeal to different customer segments. They also reduced the time lag between a film's theatrical release and its DVD release in China. Similarly, Fox Entertainment and Microsoft both adjusted their strategies in China to deal with piracy issues, such as introducing restricted software for pirated copies and focusing on changing consumer attitudes rather than directly confronting pirates. While piracy remains a problem, China has taken steps to strengthen intellectual property protection through campaigns and legal reforms.